A SURVEY ON CAUSAL RELATIONSHIPS BETWEEN THREE VARIABLES INCLUDING GLOBALIZATION, COMPETITIVENESS AND EXPORT PROMOTION IN THE ECONOMY OF IRAN (1971- 2009)

Abstract

To enter into process of globalization, competitive environment and diversifying exports, use of foreign investment and expansion of technology are of importance, and without doubt, Export Promotion is the first step to link into the process of globalization. In economy of Iran that petrodollars shape a large share of Iranian exports, not just non-oil exports has been contracted under oil export, but also dependence of Iran's economy on oil revenues has brought about so many barriers to Competitiveness of Iran throughout the world. However, expanding non-oil exports not only leads to developing competitiveness
but also rapidly joining the globalization process occurs with greater intensity. Causal relationship between variables of competitiveness and Export Promotion during 1971- 2009 has been analyzed using Hsiao Causality Test. The results indicate that there exists a two-way causal relationship between rate of exchange and index of prices.